A report from the Central Bank of Canada shows that while most Canadians are familiar with core financing and bitcoin, few actually own any cryptocurrency.
According to the results of the Bank of Canada Alternative Monetary Survey 2019, published in August 2020, financial expertise is positively associated with awareness of cryptocurrency, but negatively linked to ownership.
The bank views financial understanding as a basic understanding of investing and saving for retirement, with 47% of respondents from August to September 2019 considering the level of financial knowledge as high and 18% as low. The results show that Canadians with lower financial understanding can invest in cryptoassets twice as often.
The survey results showed that “93 percent of Canadians with high economic knowledge are familiar with cryptocurrencies, compared to only 72 percent of those with low economic knowledge.”
“In contrast, 8 percent of people with low financial knowledge reported owning cryptocurrencies, compared to 4 percent of Canadians with high financial knowledge.”
Based on the survey, the bank estimates that almost 84% of Canadians in general have at least heard of cryptocurrencies, and 5% own bitcoin (BTC) or altcoins.
“Awareness and commitment are generally at the highest levels among young people, men, college graduates and high-income Canadians,” the bank said in a statement.
These data are confirmed by a Think Forward-initiated February 2020 report prepared by ING, which is based on a 2018 survey of people from 15 different countries, including the US, Australia, the UK and the EU.
“Our estimates show that people with financial knowledge are less likely to own cryptocurrencies,” the report said. “Most likely they will not own it in the future.”
Specifically, the group calculated that a “standard deviation increase” in a participant’s financial skills – based on knowledge of inflation, simple benefits, compound interest rates and financial risks – reduced the expected probability of owning cryptocurrencies from 8.63% to 5.7. %. … In addition, a similar increase in points has shown that the chances for those who do not want to own cryptocurrency in the future have also increased.
“Most of the cryptocurrency market [is at risk] from inexperienced investors with low financial skills. These investors are likely to overestimate the prospects of rewarding cryptocurrencies and underestimate the risks associated with their respective investments. ”
However, some data indicate that many investors are turning away from cryptocurrencies due to their ignorance of cryptocurrencies. The trading and investment platform eToro conducted a survey in 2018 which found that 44% of the online investors surveyed do not trade cryptocurrencies because they believe they lack the right education. A similar study by Grayscale in 2019 found that US investors are more likely to invest in bitcoin if there are more educational resources available for the cryptocurrency.
There is also evidence that some of the most economically savvy people in the world invest in cryptocurrencies. Fidelity Digital Assets research shows that 36% of the around 800 surveyed investment organizations are digital assets. At least 80% of respondents find something attractive in cryptocurrencies.